Implementing Goal-Setting
How do managers Some managers set aggressive make goalsetting theory operational? That's often left up to the individual. performance General Electric called"stretch goals." Some CEOs, targets--what such as Procter& Gamble's Robert McDonald and Best Buy's Hubert Joly, are known for demanding performance goals. But many managers don't set goals. when asked whether their job had clearly defined goals, only a minority of employees in a survey said yes.
A more systematic way to utilize goal-setting is with management by obiee participatively set goals that are tangible, verifi- tives MBO which emphasizes able and measurable. As in Exhibit 7-4, the organization's overall objectives are translated into specific objectives for each level(divisional, departmental, indi- managers jointly participate in setting their own vidual). But because lower-unit goals, MBO works from the bottom up as well as from the top down. The result is a hierarchy that links objectives at one level to those at the next. And for the performance employee, MBO provides specific personal objectives. individual
Four ingredients are common to MBO programs oal specifici Participation in decision making(including the setting of goals or objectives), an explicit time-